Source: CCTV.com

02-29-2008 10:42

Gains at China's Social Security Funds for 2007 reached an historical high of 110 billion yuan. The National Council for Social Security Funds says it will continue to increase the value of China's social security fund and generate safe investment returns.

Gains at China's Social Security Funds for 2007 reached an historical high of 110 billion yuan.

China's Social Security Funds reached 510 billion yuan at the end of 2007. It is a remarkable 58 percent increase over 2006.

Dai Xianglong, Director General of National Council for Social Security Funds said "The social security fund has generated profit of 110 billion yuan in 2007, or 38 percent. The high rate of return came from two aspects. First is the benefit from the strong stock market performance, second is we insist on investing for the long term, and invest cautiously, and invest in true value. We are now studying the deployment strategy of the fund in the coming years. It will have guidelines of upper and lower limits for investments in fixed income, stocks, and other equity products."

Dai says the council will make further efforts to regulate operations and strengthen risk management. It will also seek international experience to build the social security net, and make the net better suited for the nation's basic conditions.

Analysts say the social security funds may increase their investment in the stock market because of the more than 50 percent growth in scale, and possible new funds under management.

 

Editor:Xiong Qu